Maybank Securities forecast lower revenue for Bloomberg

Maybank Securities Inc has revised down its 2024 revenue estimate for Bloomberry Resorts Corp, the Philippine casino operator, by 12 percent, now anticipating PHP57.4 billion (US$1.03 billion). This adjustment is based on the underperformance of Bloomberry’s VIP and slot segments during the first nine months of 2023, which fell below Maybank’s full-year forecasts at 70 percent and 60 percent, respectively. Bloomberry’s official fourth-quarter and full-year financial figures are pending.

Maybank projects a 23-percent reduction in the group’s 2024 net income to PHP13.2 billion, despite anticipating approximately 23 percent year-on-year growth. This is compared to an estimated PHP10.8 billion in net income for 2023. Bloomberry, operating Solaire Resort & Casino in Manila and a smaller casino hotel in Jeju, South Korea, remains optimistic about sustained growth in 2024. Maybank analysts Alexa Mae Carvajal and Raffy Mendoza highlight potential growth drivers, including the recovery of higher-margin mass and slots segments, as well as the opening of Solaire Resort North, set to add around 150 tables for mass and about 2,500 slots by the first half of 2024.

Maybank acknowledges the 105 percent year-on-year increase in foreign tourist arrivals to the Philippines in 2023, reaching 5.5 million, but notes that this is still only at 66 percent of pre-pandemic levels. The institution suggests that further recovery in the tourism sector could stimulate demand for the VIP segment. Maybank identifies South Korea, Taiwan, Singapore, and Malaysia as the primary sources of foreign players and speculates that an increase in mainland Chinese tourist arrivals could be a significant boon for Bloomberry.

As with all forecasts, it still not sure if this will happen or not. Bloomberg is also set to open a new casino in Quezon City and this could actually drive revenues up further. The gaming industry has seen growth and will still grow much more even breaking previous records. 2024 will be an exciting year to see all the developments in both the landbased casinos and online gaming industry.

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